The home construction market is booming in the Rocky Mountain region. Builders can't put up homes fast enough to meet the demand for new homes, this despite the rising cost of materials that is driving the cost of a new home all over the country higher and higher. If you're looking to build a custom home in Idaho, Montana, Utah or Wyoming, here is some information you need to make an informed decision about your new home.
Rocky Mountain home construction by the numbers
New home construction continues to grow in all of the Rocky Mountain states. Idaho saw the highest number of home building permits per capita in 2021 than any other state in the United States--104.71 per 10,000 residents. Utah wasn't too far behind with 97.77 per 10,000 residents. Montana and Wyoming had 36.54 and 55.54 per 10,000 residents, respectively.
The median home sales price in Boise, Idaho in December, 2021 was $515,000, up more than 20% from the previous year. In Salt Lake City, Utah, the median home sales price during the same period was $442,000, up about 25% from the year before.
Building trends in the Rocky Mountain region
1. The lack of existing homes is driving home buyers to new construction.
The supply of existing homes throughout the Rocky Mountain region isn't large enough to meet the demand for people seeking to move into the region. This has cause a surge in demand for newly-constructed homes and custom homes. In Boise, in September, 2021, buyers were paying an average of more than 80% over asking prices for existing homes, the highest premium in the United States. Provo and Ogden, Utah buyers also paid a high premium in 2021 for existing homes, although not as much as Boise buyers. The average home buyer in Ogden and Provo paid 54% and 49% respectively.
2. Some building materials continue to be difficult to get.
The explosion of new home construction in the Rocky Mountain region and the supply chain issues that persist from the pandemic disruptions continue to make building materials difficult to source. The majority of home builders see this as the industry's number one problems.
3. Construction costs are rising.
The shortage of building materials has caused the prices of lumber and other material to skyrocket and be extremely volatile. As a builder, we never know exactly what we're going to have to pay for materials anymore. Other materials are only available at a premium price.
What this means to you if you are looking to build a custom home
1. The asking price is not likely what you'll pay for an existing home.
If you are trying to compare the price of an existing home with that of a custom home, it can be very confusing, especially in areas like Boise, where buyers are paying almost twice the home's asking price. Make sure to keep this seller's "premium" in mind when you compare prices.
2. You might need to be flexible on finishes.
Guardian Homes has excellent relationship with its vendors. However, this has been an unusual time for all suppliers and builders. Unfortunately, some items just aren't currently available or have a long lead time. You may have a first, second and third choice when it comes to things like fixtures, flooring, windows and other building materials.
3. Custom home prices are rising.
Prices are rising on all homes, including custom homes. We think this is a great time to build, as prices are poised to increase and mortgage rates are on the rise. Custom homes offer the opportunity to get exactly what you want in a home, without compromising and without paying for features you won't use.
To learn more about building your own custom dream home in the Rocky Mountain region, contact Guardian Homes. We've been helping homeowners like you realize their luxury home dreams for more than 15 years.
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We are dedicated to giving you the best service possible. There is a reason why we have a reputation for being the best custom home builders, and soon enough you'll know why. Building quality homes is our specialty, and we look forward to working with you!